Goldman Sachs crushes earnings and hikes dividend, but equity trading comes up short

15 Apr 2019

Goldman Sachs crushes earnings and hikes dividend, but equity trading comes up short

Goldman Sachs reported mixed first-quarter results ahead of Monday's opening bell and hiked its quarterly dividend by 6% to $0.85 a share. Shares were little changed following the report.

Here are the results compared to consensus forecasts by Wall Street analysts surveyed by Bloomberg and estimates provided by Keefe, Bruyette & Woods: Adjusted earnings-per-share: $5.71 versus $4.97 expected Operating profit: $2.7 billion versus $2.7 billion expected Revenue: $8.81 billion versus $9.04 billion expected Equities Sales & Trading revenue: $1.77 billion versus $1.83 billion expected FICC Sales & Trading revenue: $1.84 billion versus $1.78 billion expected Investment banking revenue: $1.81 billion versus $1.70 billion expected Investment management revenue: 1.56 billion versus KBW forecast of $1.65 billion. Investing & Lending segment revenue: $1.84 billion versus KBW forecast of $2 billion

"We are pleased with our performance in the first quarter, especially in the context of a muted start to the year," said Goldman Sachs Chairman and CEO David Solomon.

"Our core businesses generated solid results driven by our strong franchise positions. We are focused on new opportunities to grow and diversify our business mix and serve a broader range of clients globally. With improving momentum across our businesses, we are confident that Goldman Sachs will generate attractive returns for our shareholders."

JPMorgan kicked off bank results Friday morning posting record results that shares climbing by more than 4%. Trading results at JPMorgan modestly beat expectations, potentially indicating a positive trading environment for Goldman.

This performance was in stark contrast to that of Wells Fargo, where CFO John Shrewsberry provided disappointing guidance on net interest margins, causing Wells Fargo shares to drop nearly 3%.

On its earnings call, Goldman is expected to provide an update on the Malaysian 1MDB scandal, which has weighed on its shares.

Goldman Sachs was up 24% this year thorough Friday.

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